You Start Working at Age 20 and You Plan to Deposit

question 20

Essay

You start working at age 20 and you plan to deposit $5,000 in a savings account every year for the next 45 years.
a.At the end of this time,how much money will you have if the interest rate is 5%?
b.You decide that's not enough money.How much will you have to save every year if you wish to have $1,000,000 when you retire?

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Definitions:

Unique Needs

Specific requirements or preferences that differ among individuals or entities, often necessitating customized solutions.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Economies of Scope

Cost advantages that enterprises obtain due to a broad range of products rather than specializing in a single product or service, enabling more efficient use of shared resources.